This monthly update, provided by the British Association of Removers gives a current overview of the global shipping market out of the UK. It provides HR and Global Mobility Managers with a useful and unbiased understanding of the potential challenges, cost implications and risks that may need to be planned for.
**Please note this information applies to all UK international removers and is not unique to Bournes.**
Key UPdates:
- Increasing operational disturbances as shipping lines configure their services under new alliances.
- Uncertainty surrounding the Trump-imposed trade tariffs has been reported to have reduced transpacific trade by 50%, with the knock-on effect of carriers altering their services at very short notice.
- Many transhipment ports in Europe and Asia are congested, leading to additional delays outside of the movers' control.
- Congestion and operational disturbances are impacting carriers' ability to maintain advertised transit times.
- The removal of capacity by shipping lines means the Trans-Atlantic trade remains oversubscribed, which has caused rates to increase, and delays and cancellations are still common.
- The omission of Middle East calls due to the Suez Canal diversion continues to impact services to the region. The services that call at Middle East ports are extremely full, and there is a backlog of shipments.
- Shipping line ONE LINE has confirmed they will not ship personal effects of Russian Passport holders, so should not be used if this applies to avoid accrued storage charges in the event of a dispute.
- Currency exchange and fuel cost changes remain a cause of rate fluctuations, which, if significant, may affect costs from the point of quoting.
- Lithium-Ion batteries are strongly advised to be removed from all consignments due to the risk of fire and inconsistent rules from shipping lines on declaration requirements. If Li-ION battery is to be included, please notify the mover so appropriate documentation can be put in place and fees applied accordingly.
For the latest guidance in full please click below.
KEY ACTIONS to MiNIMISE RISK
The combined impact of the above challenges on relocating employees can be summarised as follows:
- When a moving company provides a quote this is based on services currently offered. If a shipping line later removes that sailing an alternative will need to be re-booked which may have a higher cost or longer transit time.
- Longer lead times and increased notice may be required to secure vessel space.
- Increased likelihood of delays due to containers being rolled or rejected.
- Freight rate volatility still exists but is expected to settle in the coming months.
Recommended Actions for Global Mobility:
- Highlight any Russian Passport holders to your shipping provider to avoid complications with shipping lines.
- Plan in advance wherever possible, communicating moving dates early to allow sufficient time for booking vessels.
- Communicate closely with your shipping vendors to stay updated on changes in schedules, routes and capacity for your key lanes.
- Ensure transparency by making sure you or your mover are discussing potential delays with relocating employees to manage expectations.
- Consider updating your policy to address the challenges with Li-ION batteries to prevent complications and additional costs (or at least ensure your mover is communicating this clearly with employees). Discuss with your mover how to handle any exceptions, such as batteries which cannot be removed.
These actions can help minimise risk of additional costs or a poor service experience for your employees.
If you require any further detail or have questions please don't hesitate to contact our Corporate Relocation Team.
